- We are trying to keep the ceasefire in order to give diplomacy a chance
- Contradictory messages by the US have made us reluctant about their real intentions on talks
- All vessels can pass through Strait of Hormuz except those at war with us
- Vessels wanting to pass should coordinate with Iran navy
- We are making the necessary arrangements in coordination with Oman
- The situation around the Strait of Hormuz is very complicated and we are trying to help
- Interested in continuing energy business with India
- We understand consequences of sanctions imposed by US
The comments aren’t anything new and mainly reaffirm the existing status quo. With US president Trump making his visit to Beijing this week, the war with Iran took a bit of a backseat for two days. But now with that visit ending, we’re back to continuing the focus on the conflict. The most damning remark above is Iran’s foreign minister basically saying “we have no trust in Americans”.
Trump’s visit also concludes with no commitments or promises by China to try and help mediate the situation. So, that sort of wipes out any small glimmer of hope of there being a positive development this week.
As such, markets are now taking a turn for the worse in the final stretch of the week. Oil prices have ramped higher alongside bond yields and that is now weighing heavily on the risk mood ahead of the weekend.
WTI crude (June contract) is up 3.7% to $104.95 with Brent crude up over 3% to $109.06 on the day.
